A new wealth manager named Yellow Capital has been launched in London, continuing a trend of boutique firms being established - both in the UK and globally - in a bid to capitalise on what many see as clients’ disillusionment with bigger firms following the widespread losses engendered by the credit crisis.

Established by Haydn Ellwood and Scott Sander, both of whom have a background in working at private client IFA firms, Yellow Capital is targeting clients with a net worth in excess of £1 million (about $1.5 million)and will be working closely with introducers such as lawyers and accountants to garner new business.

The firm will also use the services of the London-based discretionary investment manager Independent Portfolio Management so that it can offer discretionary as well as advisory services to its clients, which will include individuals, families, charities, small business owners and family offices. Under the arrangement, Yellow Capital has also brought Martyn Ingra, IPM director, on to its investment committee.

Yellow Capital is keen to emphasise that it is aiming to establish very close client relationships and as such will be restricting the number of clients each advisor is assigned. Another unique selling point is the fact that the firm’s name derives from its strong belief in gold: the precious metal will comprise a small part of every client’s portfolio – unless they specify otherwise.

Ellwood describes a strong belief in the value and importance of gold as “fundamental” to the firm's philosophy, as the precious metal has “remained the principal medium of exchange worldwide for centuries while the purchasing power of most currencies has declined over the decades (for example, the US dollar has declined over 90 per cent since 1950).”

The firm also emphasises that contemporary value investing is at the heart of its investment philosophy and that it utilises a robust qualitative/quantitative methodology in its stock selection. For more on this investment approach click here.

Yellow Capital joins a raft of new businesses to have launched in the past six months. These include Trigon Wealth Management, a firm launched to specifically target high net worth individuals from Estonia and the CIS countries, and a new Geneva-based wealth manager established by Stonehage Group, the London-headquartered multi-family office.